SWITZERLAND Law and Practice Contributed by: Natalie Dini and Peter Vogt, Tax Partner AG
10.2 Common Charitable Structures The most common form used for charitable purposes is the Swiss charitable foundation. If the foundation benefits from a tax exemption, donations made to it can be deducted for income tax purposes (see 10.1 Charitable Giving ). However, the legal seat of the foundation must be in Switzerland, otherwise a tax deduction is denied.
Donations made to Swiss institutions that benefit from a tax exemption due to their public or charitable pur - pose can be deducted from taxable income. At federal level, the deduction is capped at 20% of net income. Most cantons follow the same 20% rule.
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